In the event that nominal short-term interest rates cannot be ...

[nelaaney]

In the event that nominal short-term interest rates cannot be lowered further, the Federal Reserve might rely on ________.
 
  A) federal government fiscal policy
  B) targeting the fed funds rate
  C) quantitative easing
  D) targeting the inflation rate

Question 2

The optimal consumption bundle is the point representing a consumption-leisure pair that is on the
 
  A) lowest possible indifference curve and is on or outside the consumer's budget constraint.
  B) lowest possible indifference curve and is on or inside the consumer's budget constraint.
  C) highest possible indifference curve and is on or outside the consumer's budget constraint.
  D) highest possible indifference curve and is on or inside the consumer's budget constraint.

[HandsomeMarc]

Answer to Question 1

C

Answer to Question 2

D